Steven Andrew Jackson

Attorney and Councellor at Law

Asheville & Hendersonville, NC

(828) 252-7300

Posts Tagged ‘estate tax planning’

What Is the Fiscal Cliff?

Posted on: November 20th, 2012 by steve | Tags: , ,
Posted in Estate Taxes, Taxes

On December 31 the tax cuts across the board (which where implemented in 2001, while George W. Bush was president) will expire and rates will rise on almost every tax level on almost every type of tax and every type of income earned. Also, as part of a budgetary settlement between the parties, there is a requirement that if a new tax code is not agreed upon both by the White House by Congress there will be large across the board percentage cuts to entitlements. There is a concern among some circles that this will cause another recession. Others believe that increased taxes and reduced entitlements will help the government in the long run. The theory is that it is a hard remedy, but forces something to happen which the parties have been unable to do since our great recession started in 2008.

Some prognosticators believe that there will be another “Patch” that will extend the tax cuts and everything for one more year. The theory being that it will give the parties time to negotiate a settlement. So far no one has been willing to do that hard work. Also there is some thought that “The Simpson and Bowles Commission” recommendations will be implemented. This was put together from both sides trying to come up with a compromise that might work. That is being seriously looked at for the first time. It was discarded after it first came out, as neither side wanted to give any concessions from their point of view.

Any resolutions can be a combination of the two. Taxes will go up and entitlements will be cut. There has to be a combination of more money coming in and less money going out to head in the right direction. Also, any such movement will give more confidence to the world; particularly, China and Europe to show that we are actually going to do something this time as opposed to doing nothing. It will be interesting to see. There will be changes a coming.

At the Law Firm of Steven Andrew Jackson, Attorney and Counsellor at Law, we have helped hundreds of families protect themselves and their loved ones, avoid Estate Taxes and Probate Costs, and keep their Estate Plans current with the law through The Customized Protective Estate Planning Solution™.

 

 

Your Taxes, Your Vote

Posted on: November 5th, 2012 by steve | Tags: , , , , ,
Posted in Estate Planning, Estate Taxes, Taxes

The outcome of the national and state elections will determine what is likely to happen with the Tax Code in the immediate future.  It is fascinating that expert advisors are already setting up on-line and telephone continuing education for immediately after the election on the anticipated new tax codes.  They already have a pretty good feel of what both sides are going to do.  The vote in both the White House and in Congress are too close to call, and the outcomes will strongly determine what happens to the Tax Code next year.

The 2001 Taxpayer Relief Act, commonly known as the Bush Tax Cuts, expires December 31 of this year.  The current version of that Tax Law will raise each and every income tax bracket for each and every earner in the United States.  Capital Gains will go up on anybody and everybody who has any investments or savings of any kind or nature, and the Estate Tax Exemption will go down to roughly $1 million.  This means that anything over $1 million in value that you have—including your house, your retirement accounts, your investments, your bank accounts, your personal property, the guns, the tools, the dog—are counted; if they value more than $1 million they will be hit with the Estate Tax on both the federal and the state levels.  That number can be more roughly 50¢ per dollar on the amounts above the exemptions. 

It’s anticipated that if the Republicans take the White House and Senate, that the current Tax Code will be re-enacted and placed back into effect so that our taxes will not go up. 

It is well anticipated that if the President is re-elected, and especially if the Democrats hold the Senate, that the increased taxes will remain in effect. 

The Chinese say, “May you live in interesting times.”  We most certainly are, and it will be fascinating to see whether we voted for increased taxes or not.  We’ll find our shortly after we have voted (or failed to vote).

At the Law Firm of Steven Andrew Jackson, Attorney and Counsellor at Law, we have helped hundreds of families protect themselves and their loved ones, avoid Estate Taxes and Probate Costs, and keep their Estate Plans current with the law through The Customized Protective Estate Planning Solution™.

 

Pending Elections Will Dramatically Impact Both State and Federal Taxes

Posted on: October 9th, 2012 by steve | Tags: , , , , ,
Posted in Estate Taxes, Taxes

The Bush Tax Cuts are set to expire on December 31, 2012.  There is a bill in the House of Representatives by the Republicans to extend that for one year.  If it is enacted before December 31, it would extend the tax cuts for one year.  If it is not, the tax cuts would disappear and taxes would be raised at almost every level. 

There are arguments by different political parties that raising taxes is the way to stimulate the economy, while others are vehemently opposed, stating that it would only push the economy down.

In the state of North Carolina, the candidates for governor are dramatically opposed in their view on taxes.  One believes that a large sales tax would help pay for more of the state’s expenses, where the other believes that placing a large sales tax on items produced and sold in North Carolina would only kill the business that produce and sell those items. 

Both the federal and state elections will dramatically impact what happens with the tax code in the coming days.  Please study the candidates’ positions and invest yourself in voting.  Remember that North Carolina allows absentee voting where you can vote by mail, and early voting where certain polling locations will be open for almost a month before election day.

At the Law Firm of Steven Andrew Jackson, Attorney and Counsellor at Law, we have helped hundreds of families protect themselves and their loved ones, avoid Estate Taxes and Probate Costs, and keep their Estate Plans current with the law through The Customized Protective Estate Planning Solution™.

Regardless of the Election

Posted on: September 5th, 2012 by steve | Tags: , , , , , , ,
Posted in Estate Planning, Estate Taxes, Living Trust, Taxes, Wills

Regardless of the outcome the federal and state elections, Probate Court Costs in North Carolina can be up to $6,000.00 per person or $12,000.00 per couple.  Administrative costs, much of that including attorney’s fees, will still average 5% to 7% of your assets that move through Probate Court.  The average time to move through Probate Court will still be 18 to 24 months.  That being the time from when the Will is put into the Court system and the Court says the Personal Representative can close the Probate and pay out the inheritance money.

The things that are moving through the Probate Court are public record, so that predators and creditors can watch your assets slowly grind through the Probate Court system at great cost and expense to you and your loved ones.

There are a number of Estate Planning techniques that can be used to avoid the expense, delay, and publicity of Probate Court.  These include Living Trusts where all of your assets are titled in the Trust.  This includes your real estate, bank accounts, investment accounts, and other assets that have a title.  Assets that are retirement accounts will move differently than your taxed accounts which should be titled in your Revocable Living Trust.

There are other Estate Planning techniques that can be used to avoid the expense, delay, and publicity of Probate Court, and we are happy to discuss those in detail with you.

At the Law Firm of Steven Andrew Jackson, Attorney and Counsellor at Law, we have helped hundreds of families protect themselves and their loved ones, avoid Estate Taxes and Probate Costs, and keep their Estate Plans current with the law through The Customized Protective Estate Planning Solution™.

What About the Election?

Posted on: September 4th, 2012 by steve | Tags: , , , , , ,
Posted in Estate Planning, Estate Taxes, Inheritance, Taxes

The outcome of the Presidential Election is unlikely to resolve the Tax Code in 2013.  As most people know, the Bush Tax Cuts of 2001 are set to expire on January 1, 2013.  It has been long anticipated that there would be a one year extension of those tax cuts.  The Republicans in the House of Representatives already have a bill pending to do just that.  It is believed that Congress and the White House will “kick it down the road” by extending the Bush Tax Cuts for one year.  The next White House and next Senate and House of Representative can do the tough work to resolve the Tax Code long term. 

Statewise, the Tax code is likely to stay in place; however, there may be some change in the estate inheritance or estate tax in the future.  The North Carolina governor’s seat is open and will be a hotly contested race also. 

A change in the U.S. Senate and Presidential Office is likely to have a long term effect on the Tax Code, but probably not in 2013. 

The election for governor in North Carolina is more likely to have modifications in the Tax Code.  Both federal and state governments have huge deficits and continue to dig deeper into debt as time goes on. 

In a simple version, the state and federal governments are like your household.  It is a matter of your checkbook.  More money has be deposited into your checkbook than is paid out.  Money being paid out is what the government spends.  Money going into the checkbook  is what the government takes in taxes.  There are different versions of taxes, but most all of them involve us in one form or fashion. 

We’ll see where the elections lead us on the Tax Code changes, but we do not anticipate a major rewrite of the federal Tax Code that will take effect in 2013. 

At the Law Firm of Steven Andrew Jackson, Attorney and Counsellor at Law, we have helped hundreds of families protect themselves and their loved ones, avoid Estate Taxes and Probate Costs, and keep their Estate Plans current with the law through The Customized Protective Estate Planning Solution™.

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